Pantera Capital Opens Third Crypto Venture Fund, $71M Raised So Far

Pantera Capital is looking for investors for its third crypto venture fund. The first investment is in Bakkt, the new project backed by a lot of high-profile names, including the NYSE parent company.

Pantera Capital, one of the largest institutional investors in the cryptocurrency space, is starting its third fund, according to a filing with the United States Securities and Exchange Commission (SEC). Funding for the Venture Fund III began on July 31 and has currently attracted $71.44 million.

The document does not reveal many more details, except that 90 investors have contributed to the project so far. The total goal of the fundraiser is specified as „infinite”, though a report from TechChurch claims it to be $175 million. No matter the target, even the funds raised so far outweigh the initial capital of some previous Pantera funds – the Venture Fund II raised $13 million in 2016, while the ICO Fund gathered $25 million in 2017.

The new fund has already announced its first investment - in Bakkt (pronounced “backed”), the massive project developed by Intercontinental Exchange, the parent company of the New York Stock Exchange (NYSE). Other key names behind it are Microsoft and Starbucks. The initial version of the product will be launched in November, with one-day delivery Bitcoin futures being the main highlight.

Venture capital investing is traditionally one of the riskiest forms of investing, as these funds usually back multiple startups. The hope is that a few of them will eventually become successful and cover the losses experienced in the rest (and earn a significant profit). Their performance, however, is often quite volatile. Adding the inherit significant swings in the cryptocurrency space on top of that, one can imagine Pantera’s results. They have been extremely good and quite disappointing at various points in time.